Jeff Garzik Builds “Thousand Year Cryptocurency”

One of the key developers to work on Bitcoin in its earliest days, Jeff Garzik, has announced plans to launch a new “cross-blockchain” cryptocurrency. The move comes as a response to the perceived shortcomings of existing fixed-blockchain coins. Announced Tuesday at the Money 20/20 conference in Las Vegas, the project is known as Metronome. It seeks to be the first cryptocurrency able to jump between different blockchains, potentially eliminating the need for exchanges when the average user seeks to use multiple platforms.

By allowing users to switch the blockchain on which their tokens are stored, the hope is that Metronome will be able to avoid some of the issues which affect existing projects. In a telephone interview with Fortune, Garzik explained:

Today, bitcoin faces existential threats from forks, developer drama and so on. Knowing what we know and having a clean sheet of paper, we asked what what would we build and the answer is this.

Garzik, along with Matthew Roszak, chairman of industry advocate Chamber of Digital Commerce, founded Bloq, an enterprise-level blockchain solutions company. Bloq subsquently went on to create Metronome. Their plan is to make the coins available on the Ethereum blockchain sometime in December. They will then launch support for additional blockchains early 2018.

The initial distribution of Metronome tokens will consist of a smart-contract-driven, reverse auction. The sale will take place over several days. Bloq, and others involved in development, will hold back 20% of the total ten million coins that will be sold. The reverse auction is hoped to allow more people the opportunity to own the token. The idea being that high-capital buyers won’t be able to immediately swoop in and buy up all the Metronome available.

According to Garzik, the coding of Metronome has been “battle tested” by some of the best minds in the industry. He claims it to be immune to subversion by hackers. The distribution method being entirely built using smart contracts, the project will need to be flawless to avoid a similar fate as the infamous Ethereum DAO hack.

Garzik is confident that his coin will be immune to many of the potential attack vectors which individual blockchains are currently exposed to. He claims that it’s been built to seek stability meaning that Metronome’s success will not be determined by the fate of a single blockchain:

When existential threats hit, it will automatically switch to somewhere safer.

His colleague Roszak told CNBC via phone interview that he believed institutional investors will find Metronome appealing. He went on to claim: “We’ve built a thousand-year cryptocurrency, something that’s built to last.”

Image: TakeLessons


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Things just got interesting once again in the bitcoin price. Earlier this morning, we noted that we might be in for a short period of consolidation as the action overnight settled down and markets rebalanced ahead of a fresh day of trading in the space. We did get some consolidation, but it didn’t last half as long as we thought it might price really started to take off shortly before lunchtime out of Europe and – throughout the European afternoon – hasn’t really stopped to look back.

We saw a break of 5700 within the last hour and it’s now looking like we are going to see some more psychologically significant levels taken out as we head into the crossover session out of the US near term.

So, in anticipation of us seeing this sort of action materialize as things mature, here’s a look at what we are going for in the bitcoin price and where we intend to jump in and out of the markets according to the rules of our intraday strategy.

As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we are looking to enter as price matures.

It’s a one-minute candlestick chart and it’s got our key range overlaid in green.

As the chart shows, then, the range we are looking at for the session today comes in as defined by support to the downside at 5695 and resistance to the upside at 5735. We are going to look for an initial trade as dictated by a close above resistance, at which point we will enter long towards a target of 5770. Conversely, if we see a close below support, we’re going to jump into a short trade towards a downside target of 5650.

Let’s see how things play out.

Charts courtesy of Trading View

Ronnie Moas, founder and director of Standpoint Research, believes the market cap of bitcoin could surpass that of Apple by 2022, at $810 billion. That is, a bitcoin price of at least $45,000.

On CNBC’s Capital Connection, Moas stated:

“People need to start taking this seriously because today bitcoin caught up with Goldman Sachs. He added, “Within five years, it’s going to catch Apple which has (a more than) $800 billion market cap.”

Moas Expects Bitcoin Price to Reach $50,000 by 2022

Purely based on the increase in demand for bitcoin and the rapid growth rate of the cryptocurrency industry, Moas expects the price of bitcoin to reach $50,000 by 2022. Prominent Wall Street analysts and strategists including Tom Lee of Fundstrat offered similar predictions in the past.

But, these predictions are not completely hypothetical; some analysts like Lee have used models like the Metcalfe’s law to forecast the growth rate of bitcoin as a communications network, similar to the way analysts in the technology sector have forecasted the growth rate of multi-billion dollar networks like Facebook and Google.

As Lee previously explained, the demand for bitcoin as a store of value, safe haven asset, and digital gold is increasing exponentially, from both general consumers and institutional investors. If bitcoin could penetrate at least a fraction of the market of gold, that would add hundreds of billions to the current market cap of bitcoin, which stands at around $95 billion.

Still, at this point, Moas explained that liquidity is an issue for high profile traders, institutional and retail investors. He said:

“I don’t expect those people to come out and recommend … to buy bitcoin. Because that hurts their business. You have a supply-demand equation here that is mindboggling to me.”

Improvement in Liquidity, Emergence of Regulated Clearing Houses

Already, strictly regulated trading platforms such as LedgerX, a digital currency-focused clearing house and options, derivatives, and futures exchange approved by the US Commodity and Futures Trading Commission (CFTC), have started to provide efficient infrastructures and regulated channels for institutional investors.

In its first week of operation, LedgerX processed over $1 million in trades, surpassing the expectations of the LedgerX team which forecasted a small trading volume in its early days of operations. The LedgerX team stated:

“We ended up completing swaps and options trades worth over $1,000,000 USD. Crucially, these trades were cleared through LedgerX, which is the only institutional grade, US federally regulated exchange and clearing house for digital currencies. And we are literally just getting started.”

As more regulated exchanges and trading platforms in the US, Japan, and South Korea provide better infrastructures for large-scale institutional and retail traders, liquidity will become a nonissue for most investors in the sector. Several exchanges like Gemini are currently partnering with major financial institutions like the Chicago Board Options Exchange (CBOE), to address the growing demand for bitcoin and cryptocurrencies from the traditinal financial market.

There are many different opinions on the topic of cryptocurrency ICOs. A lot of countries are regulating this industry as we speak. Jordan Belfort, known as the author of Wall of Wall Street, isn’t a big fan of initial coin offerings. In fact, he claims they are “get-rich-quick schemes”. It is certainly true a lot of these projects will fall flat sooner rather than later.  Most of these projects have no MVP either before raising money, which is a big concern.

No one can deny cryptocurrency ICOs have become all of the rage over the past 18 months. Everyone and their dog is raising money for some project. For some reason, people are willing to throw millions at these projects without problems. Later on, they find out they know nothing about the project and don’t see the goods delivered in quick succession. It is evident this industry is attracting a lot of negative attention. Jordan Belfort thinks that negative attitude toward ICOs is more than justifiable.

ICOs are a big Scam, According to Jordan Belfort

More specifically, Jordan Belfort refers to ICOs as get-rich-quick schemes. This means most companies will raise money and then bail on investors. They can certainly do so without too many repercussions these days. Very few regions effectively regulate initial coin offerings right now. That situation is slowly changing, but for now, investors aren’t protected whatsoever. Buying shares of future companies through unregulated means has attracted a lot of novice investors.

In fact, some of the bigger ICOs are already struggling to keep things together. Tezos is a fine example of how raising money is only part of the job. Their internal squabble will hurt investors regardless of the outcome. There will be more of these ICOs which will blow up eventually. In the opinion of Jordan Belfort, it will only take a few scams to create a massive disaster. In fact, he is genuinely convinced this whole ICO craze will be far worse than any other scam the world has seen to date. A bit of a harsh stance, although not entirely inaccurate either.

Unsurprisingly, few people seem to agree with Jordan Belfort right now. ICOs are an excellent way to let everyone invest in future companies. The same has been said about crowdfunding in general not too long ago. Unfortunately, this business model will attract far less honest people as well. It is impossible to avoid. Those few scams out there will drag this whole initial coin offering industry down with them. When that will happen, appears to be only a matter of time.

Things moved pretty fast overnight in the bitcoin price and we’ve seen the market take a bit of a hit on the late US volume. Price is currently trading in and around the 5670 level, which is a little down on the levels we were looking at heading into the crossover session last night, and how long this dip will last remains to be seen.

If the action that we got over the weekend and into this fresh week is anything to go by, however, we aren’t expecting too much weakness near term.

Price is consolidating a little bit and it’s not going to take much to get things turned around and to get price moving back northwards, so long as the bulls can regain control of the market before we hit any key psychologically significant levels (say, for example, 5,500).

So, with this noted, let’s get some levels in place that we can use to push forward into the session this morning n an attempt to draw a profit from the market. As ever, take a quick look at the chart below before we get started so as to get an idea where things stand and where we are looking to get in and out of the markets if we see any volatility. It’s a one minute candlestick chart and it’s got our key range overlaid in green.

As the chart shows, the range we’ve got in our sights for the session this morning comes in as defined by support to the downside at 5610 and resistance to the upside at 5698. If we see a close above resistance, we’ll jump into the markets for a long entry towards an immediate upside target of 5740. Conversely, a close below support will get us in short towards a target of 5570.

Let’s see how things play out.

Charts courtesy of Trading View

By far the most controversial topic of debate in Bitcoin is SegWit2x. This upcoming hard fork is a key moment in the history of the world’s biggest cryptocurrency. For supporters of this fork, things aren’t looking great, though. A lot of companies won’t support it or pull support pretty soon. Gatecoin even announced they will not support B2X in any capacity whatsoever.

Gatecoin is one of the many cryptocurrency exchanges available today. As such, the company has to make some decisions when it comes to hard forks. They will not support SegWit2x or its altcoin in any official capacity. This means user balances will not be credited during the fork. Nor will the company process any B2X transactions. Plus, there will be no trading markets for this altcoin either. Not a good day for supporters of the upcoming hard fork by any means.

Gatecoin Rejects B2X in its Current Form

Contrary to what some people may think, this decision is anything but a surprise. Most people agree SegWit2x isn’t needed in any official capacity. It is a proposal to settle the Bitcoin scaling debate once and for all. However, there are still some issues with this approach which will need to be addressed. The lack of proper two-way replay protection is of great concern to Gatecoin. Other exchanges will need to look at this aspect a lot closer in the coming days.

Not being able to double spend coins after the hard fork is the number one priority. Or that is how it should be, to say the very least. For some unknown, Bitcoin Gold and SegWit2x developers aren’t working on this aspect in an urgent manner. One would expect “better versions of Bitcoin” to ensure customer funds are safe from double-spends. So far, that is not the case. It certainly limits the appeal of these hard forks. Instead, most people will seemingly claim their free coins, sell them, and never look back.

That will be pretty difficult without exchanges supporting B2X, though. Thankfully, it seems there are some platforms which will enable support for this altcoin moving forward. Gatecoin has no intentions to change their stance anytime soon. However, they will operate a B2X node in case two-way replay protection is added in the future. Whether or not that will effectively happen, remains to be seen, though. The future isn’t looking too bright for B2X right now, that much is certain.

The phrase “He who owns the information, he owns the world” became famous thanks to the desire of the Rothschilds to be the first to know the news. Winston Churchill loved to repeat the same phrase. But all the great men said the phrase knew that information is only precious if you know how to use it further.

Our world thirsts for information. Just a couple years ago the worldwide market went crazy about Big Data and possibilities they might open but dreams became phantoms – no one knew how to work with all the collected information. Now the situation is totally different. There are a lot of tools to analyze the raw data and to turn them into the useful statistics and accurate forecasts now on the market. Companies can use this information to enhance their services, to automate processes, to gain insights into their target market and to improve the overall performance using the feedback they get.

For example, the online retail giant Amazon has access to a massive amount of data about its customers, what kind of purchases they make and what are they searching for. While this data is obviously put to advertising algorithms, Amazon also uses the information to improve customer relations, the area that many Big Data users overlook. General Electric uses the data from sensors on machinery like gas turbines and jet engines to identify ways to improve working processes and reliability. Starbucks uses Big Data to determine the potential success of each new location.

One more innovative and promising tool to transform the data from raw to useful is neural networks. Even though they have been established as the well-known method in business, there is enormous space for additional research, and here is the case to show it. In the Southeast Asia, the fintech company MicroMoney uses the neural networks and Big Data tools in its own scoring system for a rapid creditworthiness assessment of a client with no credit history. Instead of papers, certificates, and cross-checking scoring system analyzing personal data from a borrower’s smartphone. All that’s needed is to install the MicroMoney application, sign the agreement to use the personal data and to complete the loan application online. Then the scoring system analyzes all the available data, sets a credit rate and identifies potential credit risks with an accuracy of more than 95%. In case a customer reaches the certain credit score points the system approves the loan automatically and sends the money to a user’s e-wallet.

Scoring system constantly reviewing data within its increasing database. The more data processing, the faster and more accurate is the result of customer’s creditworthiness evaluation. In future self-learning algorithms can provide people with all kind of services even before they think about it. For example, a man announces in his social account that his wife is pregnant. This man is known as a reliable client of the MicroMoney, he has a high credit rating. The scoring systems catch this fact, correlate this information with his recent searches for houses to rent in search engines, evaluate his credit rate and he receives a special offer of mortgage for house buyers, with all interests and payments specified due to his monthly income. Or, let’s say, a girl is graduating with a bachelor’s degree with her marks higher than average score and searches for other universities to continue her education. The systems are able to analyze her bank account, to find that she has not enough money to enroll and offer her a student loan.

There is no doubt that these technologies can change not only banking industry but the way people consume, spend and save their money. We already face all benefits of targeting advertising but it is only beginning of the integration of smart technologies in our everyday life.

Coinbase, the world’s largest bitcoin wallet platform and cryptocurrency startup with a $1.6 billion market cap, has released an update on its support for SegWit2x and Bitcoin Gold, clarifying that the original Bitcoin blockchain will continue as “BTC” without the need for conditional integration.

In an official announcement, Coinbase stated:

“The Bitcoin Segwit2x fork is projected to take place on November 16th and will temporarily result in two bitcoin blockchains. Following the fork, Coinbase will continue referring to the current bitcoin blockchain as Bitcoin (BTC) and the forked blockchain as Bitcoin2x (B2X).”

Significance of Coinbase Declaring Bitcoin Blockchain is BTC

Many cryptocurrency exchanges including Bitfinex, Bitfinex, and Coinbase have previously stated that they will list the original bitcoin blockchain as BTC, subsequent to the SegWit2x hard fork in November. But, several wallet platforms and exchanges such as Xapo and Blockchain have revealed that they will list bitcoin as “BC1” and publicly list SegWit2x as “BTC,” if the SegWit2x blockchain becomes the majority chain.

Evidently, it is difficult to justify which forks of bitcoin is the majority chain and hashrate should not be used as a sole indicator. As bitcoin investor and Atlanta Digital Currency Fund partner Alistair Milne stated, miners tend to follow the more profitable chain and hash rate could very easily migrate from one chain to another, as seen in the case of Bitcoin Cash (BCH).

Milne wrote:

“Miners follow the money, they do not lead the money. This has never been illustrated more clearly than by Bitcoin Cash and the joke that is their difficulty adjustment algorithm. A rational miner fears the market negatively valuing the tokens they are trying to mine. They are extremely sensitive to profit and loss (no matter how rich they pretend to be). “

For instance, hypothetically, if companies have implemented the strategy of Xapo and listed Bitcoin Cash (BCH) as BTC and the majority chain upon its hard fork due to its hash rate, it would have caused extreme confusion amongst bitcoin users because the majority of miners and hashrate moved back to bitcoin once Bitcoin Cash became less profitable to mine.

Major platforms like Coinbase, Bitfinex, Bittrex, and Bithumb cannot possibly list the original Bitcoin blockchain as the minority chain and then re-list bitcoin as “BTC” once it gains most of its hash rate again.

Hence, the bitcoin and cryptocurrency community have praised the efforts of Coinbase to list bitcoin as BTC, and pursue unconditional integration by listing SegWit2x as B2X.

Coinbase on Bitcoin Gold

Coinbase has shared the same sentiment with Bittrex and Trezor, and stated that Bitcoin Gold is not ready and unsecure.

“The Bitcoin Gold fork is projected to take place on October 23rd. Information about this fork has been limited and there are concerns about its security and stability. As a result, we do not believe it is safe to allow support for Bitcoin Gold at this time,” said the Coinbase team.

It is likely that Coinbase will not add support for Bitcoin Gold until the Bitcoin Gold development team adds necessary replay protection and completes its codebase.

There is a broad based alt coin price appreciation against the USD. As hinted by alt coin price charts, chances of across the board alt coin rally is high. Let’s review these alt coins below:

ALT COIN LSK PRICE ACTION ANALYSIS

Alt coinLSK Daily Chart
LSKUSD Daily Chart for 24.10.2017

As the markets opened today, LSK got a shot in the arm. So far, alt coin LSK has move $1.2 and strongly rebounded from support mentioned at $4.3 breaking above the 20 period MA. USD bears are currently retesting the resistance trend line at $5.2. Should LSKUSD close above that area of resistance strongly, the alt coin LSK bulls will drive prices towards our previous resistance at $6.5. Also note that stochastic bull divergence with a buy signal in place. If it remains this way, LSK bulls should be in charge as bull momentum build up from the oversold territory.

ALT COIN DASH PRICE ACTION ANALYSIS

Alt coin DASH Daily Chart
DASHUSD Daily Chart for 24.10.2017

Before today’s upturn, the first DASH bears profit level was hit at $250. As you can see, alt coin DASH hit $250 before USD bears pushed DASH prices higher. This is the third time in 15 trading days where the same support is being retested. For now, DASHUSD is oscillating in a channel bounded at the upper limit by $330. There is a high chance of further alt coin DASH rally with that stochastic buy signal and a bullish divergence. For now, if today’s candlestick close as a bull then it shall confirm an evening star and a 3-day reversal pattern with a buy stochastic signal.

ALT COIN IOT PRICE ACTION ANALYSIS

Alt coin IOT Daily Chart
IOTUSD Daily Chart for 24.10.2017

Yesterday’s IOT bear alt coin prediction depended on IOT restriction below $0.45. Yes it did but with new developments. Now, over the past 3 trading days, alt coin IOT has always closed as a doji with those long lower wick. That signal IOT bullish pressure and surely, a buy signal is in place in the daily chart. IOT bulls pushed volumes above 13M daily average and USD bulls are now cutting their losses. Anyway, that evening star pattern with high volumes and a stochastic buy means IOTUSD will rally in the coming days.

ALT COIN MONERO PRICE ACTION ANALYSIS

Alt coin Monero Daily Chart
Monero Daily Chart for 24.10.2017

Just like other alt coins, there is a broad base USD weakness as shown in Monero alt coin daily graphs. Monero price chart is showing tendencies of a Monero rally in the coming sessions. For now, there is no buy signal neither are stochastics turning from oversold territory. Currently the value of Monero or XMRUSD depends on the first level of support and the direction where the BB squeeze will break towards. If Monero prices appreciates above the 20 period MA and closes firmly above it as a bullish engulfing pattern, then we go long and aim above $100 with stop loss below $75.

ALT COIN NEO PRICE ACTION ANALYSIS

Alt coin NEO Daily Chart
NEOUSD Daily Chart for 24.10.2017

As mentioned earlier, alt coin NEO value depends on how USD reacts at $26 support and $34 resistance levels. Our NEOUSD rally relied mainly on NEO close above $34 and that is what is happening today. NEO prices broke above the 20 period MA and tested $34. There is a NEO buy signal as stochastics are turning from the oversold territory. Sustained USD bear pressure means a buy entry tomorrow with immediate target at $40.

All charts courtesy of Trading View

Key Highlights

  • Ripple price traded towards the $0.1850 support against the US Dollar and started a recovery.
  • Yesterday’s highlighted short-term bearish trend line with resistance at $0.1950 was breached on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The price might continue to move higher and remains supported on dips near $0.1950.

Ripple price has started an upside move against the US Dollar and Bitcoin. XRP/USD is recovering and showing bullish signs above $0.1950.

Ripple Price Bounces Back

We saw a major decline during the past few days in Ripple price towards $0.2000 against the US Dollar. The price even broke the $0.2000 support, which ignited further declines. However, the decline was protected by the $0.1850 support, which held the downside. There were strong bids around $0.1850, which ignited an upside move above $0.1900.

Buyers were able to move the price above the 23.6% Fib retracement level of the last decline from the $0.2250 high to $0.1852 low. The best part was a break above yesterday’s highlighted short-term bearish trend line with resistance at $0.1950 on the hourly chart of the XRP/USD pair. At the moment, the price is above the $0.2000 handle and the 100 hourly simple moving average. These are positive signs and might take the price towards the $0.2200 level.

Ripple Price Technical Analysis XRP USD

An immediate resistance is near the 50% Fib retracement level of the last decline from the $0.2250 high to $0.1852 low at $0.2070. A close above $0.2070 would signal a nice upside move towards $0.2200. On the downside, the broken resistance at $0.1950 would act as a support in the short term. The most important support and buy zone is at $0.1850.

Looking at the technical indicators:

Hourly MACD – The MACD for XRP/USD is back in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is reaching the overbought levels.

Major Support Level – $0.1950

Major Resistance Level – $0.2200

 

Charts courtesy – Trading View, Kraken